In the past, domestic LED display manufacturers were keen on overseas trade, but in recent years, some LED display companies focusing on overseas markets have "returned" to the domestic market. In the process of development of Chinese LED display manufacturers, they have received strong support from national policies, and the huge domestic market has provided enterprises with a broad space for development. Therefore, the LED display industry has developed very rapidly. However, many problems have also appeared in the process of rapid development of our industry, which has laid hidden dangers for the subsequent sustainable development. Among them, the most obvious problem is the "lowest bid winning" problem. What is the impact of winning the bid at the lowest price on the development of the LED display industry?

Objectively speaking, "winning the bid at the lowest price" does not exist in a certain industry, but a common problem in major industries, and it cannot be reversed by the company's own will. Although the "lowest price bid" is hated by enterprises, because it is a "natural" product in the current business environment, enterprises know that it is harmful and unhelpful, but they can only bite the bullet and participate. Because no matter how low the price is, someone will do it, and if you don’t do it, you have no chance. However, the harm of "winning the bid at the lowest price" is very great. It will encourage enterprises to charge shoddy products and lead to a decline in the quality of products and engineering construction. The result is that the fittest wins. In practice, the winning bid price is often much lower than the cost price. In this case, it is very easy to cause companies to cut corners, thereby burying potential safety hazards.

You get what you get for what you pay for. For engineering products such as LED displays that involve a high amount of money, the amount involved in the bidding process is often large. In the face of the "minimum winning price", it is often unscrupulous, and the hidden costs involved ( such as public relations costs) are very high. Moreover, many LED display projects are mainly based on government bidding. In the bidding process, in the face of local economic protectionism, there may still be problems such as "bid control", and there is a certain exclusivity in the bidding process. As a result, the company has tried hard, and even if it finally gets the project, it can only be "shoddy" in order to be profitable. Many times, when a project is completed, it becomes a business at a loss.

In the market environment of "winner at the lowest price", it is difficult to guarantee the quality of many projects created by LED displays. The LED display has done a lot of engineering projects in the early stage, and various quality problems occurred, which directly led to a crisis of customer confidence in the LED display. Don't you see, in the process of cleaning up outdoor advertisements in major cities across the country in recent years, almost all LED displays can't escape the disaster?

It can be seen that winning the bid at the lowest price is extremely unfavorable to the development of LED displays. It not only increases the burden of enterprises and reduces profit margins, but more seriously, greatly curbs the innovation ability of enterprises. So how should our display companies respond?